Greggs Finance Report

Greggs is a well know bakery for its delicious cakes, sandwiches, pastries and pizza! John Gregg who was the founder of Greggs in 1951 who opened he’s first small bakery in Gosforth High street. His son later on took on the business after the death of his father. Greggs developed a reputation for good quality and great value. In the 90’s competition was strong but Greggs continued with their strengths and great prices. Greggs also began to grow by acquiring regional bakery retailers across the UK and by the 1970s there were shops in Scotland, Yorkshire and the North West. During the 2000’s was when Greggs became to grow rapidly, with 1,600 shops open today they plan to open another 600 shops over the next few years. This bakery bake there delicious bread every day in our own local bakeries. Greggs is well known for quality at its best which is proved by the food. Greggs seems to be constantly keep growing and bettering themselves from the day they’ve been opened.

Greggs use seven key financial performance indicators to monitor the performance of the Group which are total sales growth, like for like sales growth, growth in net shop numbers, capital expenditure, adjusting operation profit, operating margin and Adjusted diluted earnings per share (pence). Greggs will also have to finance new shows and Resites if they plan on making a new one or refitting an existing one, equipment such as the goods to make the products.
Greggs finance is kept up to date by following each one of these key financial steps. There are many different sources of finance that Greggs use, Greggs financial sheet will consist of the following: Sales
Profit before exceptional items operating margin taxation Capital expenditure
Return on capital
Cash flows and balance sheet
These are the following things that need to be financed with GREGGS every year to make sure they are on top of things. These things will be taken on separately every year anf financed to see how much profit they have made or if they are making loss to try and better there company to become a bigger and better then there rivals such as wenzels.

Sales
At the end 31st December 2011 it ended at £701 with 2010 ending at £662 million, gave Greggs a profit of 5.8 percent in one year. Greggs like-for like sales also grew 1.8 percent during 2010 to 2011, this was on 0.4 percent in the first half, 0.8 percent in the third quarter and 3.8 percent in the final quarter. This increase in sales resulted upon the opening of around 60 new shops (McMeikan, 2011). With Greggs with their new porridge pots sold over staggering 800,00 of these which also helped to the profit of 2011. Also setting a new record by selling 17.3 million cups of the coffee during the year an increase of 15 pre cent from the last year.

Profit before exceptional items:
The profit before exceptional items was £53.0million in 2011 which in 20110 was £52.5 another profit was made by the company of 1.2 per cent. Greggs profit over the years has always increased and not gone down in 2011 they had an inconvenience which was the royal wedding reflecting there reduced trade hours and additional cost of operation during the day. Also the net finance Was an income of 0.1 million 2010 an income of £0.2, Greggs pre-tax profit before exceptional items was £53.1 million and in two thousand and ten £52.5million another profit was made my Greggs.

Operating Margin: (a ratio used to measure a company's pricing strategy and operating efficiency)

The operating margin before exceptional items was 7.6 per cent and in 2010 7.9 percent, a reduction in the financial statement for Greggs. This reduction has an answer due to the additional public holiday as explained earlier exceptional items. Also Greggs responded to demands of a significantly more value driven, market place and extenuated their national